Libra’s major challenge! The AMC Alliance is the first to release the stable currency CACX!

September 0510:382019

AFP’s Financial Watch Special Issue The news that global chaebols are going to develop digital currency can’t be suppressed after Facebook announced Libra. Traditional banking financial institutions have been very cautious about digital currency, but since then it has begun to accelerate the development and support of digital currency. Recently, the AMC encryption digital currency alliance, which was established by 43 famous traditional financial giants, announced Its own encrypted digital currency program, the stable currency CACX, intends to introduce its own encrypted digital currency system to pan-global trade settlement and payments against Libra with 3 billion potential users.

On the morning of September 5, 2019, US Eastern Time, AMC Joint Conference Speaker David Crozier held a press conference at the Rockefeller Center to announce the official launch of the CACX Stabilization Coin Program. The plan includes the first stable currency fund of approximately $720 million, the first batch of special underwriting rights of the AMC Alliance, guaranteeing the legal effect of its stable currency, improving reserves and transparent auditing. It is reported that CACX plans to receive full support from major financial funds including JPMorgan Chase, Deutsche Bank, Mitsubishi UFJ Financial Group, Inc, Leon Cooperman, Bridgewater Associates, Millennium Management, Lone Pine Capital, Pine River, Viking Global, allianz, Brummer & Partners.

Yves Mersch, executive director of the AMC Alliance and a member of the European Central Bank (ECB) board of directors, said on Monday (September 2) that the planned digital cryptocurrency “Libra” (Libra) could weaken European banks’ currency The ability of policy, people do not believe Facebook’s unreliable commitment to Libra.

As part of expanding its digital payment business, Facebook released a digital cryptocurrency called “Libra” in June. Libra plans to officially launch next year and is expected to provide digital trading and payment services to billions of potential users. But then, many central banks, finance ministers, legislators, and many privacy protection agencies around the world have questioned Libra and expressed concern.

Today, ECB board member Mercy also said that Libra may weaken the ECB’s ability to formulate monetary policy. He said: “Depending on Libra’s acceptance, it will likely weaken ECB’s control over the euro, undermine the monetary policy transmission mechanism by affecting the liquidity of banks in the euro zone, and undermine the international role of the single currency.”

To this end, Mercy believes that European regulators must advocate for Libra’s jurisdiction and also need global cooperation to mitigate its risks. He said: “I sincerely hope that the European people will not be tempted to give up the security and stability of current payment solutions and channels, and instead support Facebook’s unpredictable promises.”

Previously, central bankers, including Federal Reserve Chairman Jerome Powell and European Central Bank President Mario Draghi, listed a number of issues related to Libra, including money laundering, Terrorist financing and financial stability. US Treasury Secretary Steven Mnuchin has warned that Libra may be used to finance terrorism.

The stable currency corresponding to CACX has many in the encrypted digital currency market, such as USDT, PAX, etc., but none of them have CACX and are closely anchored with traditional financial giants and application scenarios. In the field of encrypted digital currency, USDT is the most common and widely circulated stable currency, with a value of 1 USDT = 1 US dollar. On August 5, 2019, Tether’s 24-hour maximum transaction volume is still 39.62 billion US dollars, far exceeding BTC. The $31.44 billion. At the beginning, USDT only applied to the Omni Layer protocol. After July 2019, exchanges like Poloniex began to provide USDT support for the ETH and TRON blockchains, which not only improved the accessibility of the USDT, but also reduced trading hours and transactions cost.

However, USDT’s issuing company Tether is not a reliable financial institution. In fact, USDT only has a first-mover advantage, and USDT has never published any audit report and account certificate to prove the value of USDT.

On October 15, 2018, due to the crisis of trust, the USDT fell sharply at 13:00 on the same day. Many retail investors exchanged USDT for French or mainstream currencies. The short-term redemption of the currency has caused the exchange rate of most exchanges to fall by as much as 15%. But the bitcoin that caused the day rose by as much as 22.6%.

On April 25, 2019, USDT issued more than $800 million in a month, and Tether admitted that only 74% of USDT had cash and equivalent support. In the same period, Bitfinex’s funds of 850 million US dollars were frozen, and it was suspected that the USDT was issued through Tether to fill the funding gap. Bitfinex broke out slowly, and the market once again panicked.

CACX’s first batch of up to $720 million in special underwriting rights stipulates that each CACX will consist of a package of multinational currencies, not entirely dependent on the US dollar, and its nature is similar to the World Bank’s special drawing rights, avoiding exchange rate fluctuations and economic cycles. Impact. The AMC Alliance’s hopes for CACX are far more than the encryption of digital currency. In fact, in a wide range of areas, such as settlement payments and cross-border payments, in cross-border trade, investment loans, etc., AMC Alliance is sufficient to use CACX in powerful application scenarios. In circulation, based on the huge financial coverage system, the value and advantages of CACX far outweigh Libra and USDT.